Bitcoin Could Fall to $5,000 Next Year – Bitcoin Markets and Prices News

Standard Chartered Bank says the price of bitcoin could drop to $5,000 next year. The bank analyst explained that cryptocurrencies could fall further and more crypto businesses could “succumb to liquidity restrictions and investor withdrawals.”

Standard Chartered Bank’s $5,000 Bitcoin Scenario

Standard Chartered Bank released a note on Sunday titled “Financial Market Surprises of 2023.” The note outlines a number of possible scenarios that “we feel are undervalued by markets,” wrote Eric Robertsen, global head of research at Standard Chartered.

One scenario is for bitcoin price to drop to $5,000 next year, which would be about a 70% drop from BTC’s current price of around $17,000.

Robertsen detailed:

Yields are plunging with tech stocks, and while bitcoin selling is slowing, the damage has been done. More and more crypto businesses and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets.

The Standard Chartered analyst clarified that the extreme scenarios described “have a non-zero probability of occurring over the coming year, and… fall significantly outside the market consensus or our own views of base”.

While noting that cryptocurrencies could “fall further” and that more crypto firms could “succumb to liquidity restrictions and investor withdrawals,” Robertsen said gold could climb as much as 30% at $2,250 an ounce and once again become a safe haven. He described:

Gold’s resurgence in 2023 comes as equities resume their bear market and the correlation between stock and bond prices turns negative again.

Commenting on Standard Chartered Bank’s $5,000 bitcoin price outlook, gold bug and economist Peter Schiff reiterated his prediction that BTC still has a lot to fall. He tweeted on Monday:

Bitcoin has a downside risk of well over 70%. After such a drop, the bitcoin price will still be way too high, so $5,000 won’t even be close to the bottom.

Recently, veteran investor Mark Mobius said bitcoin could fall to $10,000 next year as the Federal Reserve continues to raise interest rates and tighten monetary policy.

However, some people are still optimistic about bitcoin price. Venture capitalist Tim Draper, for example, doubled his BTC price prediction to $250,000 by the middle of next year.

Do you think bitcoin will fall to $5,000 next year? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Leave a Comment